REPORT TO THE CITY COUNCIL
December 17, 2015
FROM: SCOTT L. MOZIER, PE, Director
Public Works Department
THROUGH: ANDREW J. BENELLI, PE, City Engineer/Assistant Director
Public Works Department, Traffic and Engineering Services Division
BY: ANN LILLIE, Senior Engineering Technician
Public Works Department, Traffic and Engineering Services Division
SUBJECT
Title
RESOLUTION - Calling Special Mailed-Ballot Election for Community Facilities District No. 15 (East Copper River Ranch Maintenance District) and setting a new election date (Eastern portion of the Copper River Ranch Development located northwest of North Willow and East Copper Avenues) (Council District 6)
Body
RECOMMENDATION
Adopt Resolution Calling Special Mailed Ballot Election for Community Facilities District No. 15 and Setting New Election Date
EXECUTIVE SUMMARY
On October 29, 2015, the Council of the City of Fresno (“Council”) adopted Resolution No. 2015-195 to form Community Facilities District No. 15 - East Copper River Ranch Maintenance District (“CFD No. 15”) at the request of the Owners/Developers (“Owners”) of the real properties within the boundaries of CFD No. 15. The noticed public hearing to consider forming CFD No. 15 was held on December 3, 2015, on which date Council adopted Resolution No. 2015-215 and formed CFD No. 15.
A special election must now be held to obtain approval to levy a Special Tax on the properties within CFD No. 15 to finance the operation and reserves for maintenance (“Services”) of certain required above ground public improvements as listed in Exhibit B of Resolution No. 2015-195.
BACKGROUND
On October 29, 2015, the Council of the City of Fresno (“Council”) adopted Resolution No. 2015-195 to form Community Facilities District No. 15 - East Copper River Ranch Maintenance District (“CFD No. 15”) at the request of the Owners/Developers (“Owners”) of the real properties within the boundaries of CFD No. 15. This request comes from the Owners need to meet the City’s requirement to maintain certain above ground public improvements, including, without limitation, landscaping, trees and irrigation systems within trails, open spaces and parks, landscaped buffers, parkways and medians; local street paving, local street lights, street name signage, street furniture, curbs, gutters, sidewalks, curb ramps and other public facilities and services as defined by the City of Fresno Special Tax Financing Law, Chapter 8, Division 1, Article 3 of the Fresno Municipal Code (“City Law”). (See attached location map.)
Resolution No. 2015-195 also directed the preparation of an Engineer’s Report describing the Services and the costs of those services and this report is on file with the City Clerk.
The maintenance services are expected to cost approximately $1,141,519 annually when all maintained features have been completed. The basis of this cost was reached through the services of Quad Knopf Inc. who determined the scope and verified the base rates and costs for the maintenance of this project.
It is proposed that the District will carry a reserve fund equal to the annual cost. The maintenance agreement requires the Owners / Developers to post a performance bond for one half of the annual cost ($570,759.50) for the length of time necessary to fully fund the reserve account with District proceeds.
On December 3, 2015, Council adopted Resolution No. 2015-215 and formed CFD No. 15 under the City of Fresno Special Tax Financing Law, Chapter 8, Division 1, Article 3 of the Fresno Municipal Code, with the district boundary, the services to be provided and the rate and method of the tax levy as defined by the Resolution of Intention (the “Formation Resolution”).
The next step in the process is to fund CFD No. 15 via a special landowner election. If approved by the landowners within CFD No. 15, a levy of the proposed Maximum Special Tax listed in the Rate and Method of Apportionment of the Special Tax for FY15-16 (Exhibit C of the Formation Resolution) would be approved. The Maximum Special Tax may be adjusted annually, at the discretion of the City, to the Special Tax at +3% plus the increase, if any, in the construction cost index for the San Francisco Region.
The levy of the special tax is subject to a special election by the landowners within the district boundary. The time frame for the Special Mailed-Ballot Election will be as follows, in accordance with the City Law:
§ 14-day period after the election is called, during which arguments may be submitted for or against the special tax
§ 10-day period for submission of rebuttals
§ 10-day period for compliance with other portions of the Elections Code
§ Ballots will be mailed between January 21 and February 9
§ The election day will be February 19
§ Ballots will be tabulated on February 22, 2015, or as soon as possible thereafter
§ The ordinance to levy the special tax may be scheduled for Council action on February 25, 2016.
Note that the election date set forth in Resolution No. 2015-216 does not comply with statutory requirements for a special landowner election, in the absence of a timeline waiver. As such, this resolution would supersede and replace Resolution No. 2015-216, which was adopted on December 3, 2015, and set a statutorily correct election date.
The resolution has been approved as to form by the City Attorney’s Office.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this hearing does not qualify as a “project” and is therefore exempt from the California Environmental Quality Act requirements.
LOCAL PREFERENCE
Local preference was not considered because this hearing does not include a bid or award of a construction or services contract.
FISCAL IMPACT
No City funds will be involved. All costs for services will be borne by the property owners within the subject tract.
Attachments:
Location Map
Resolution